Over the weekend, WarnerMedia (NYSE: T) released its first major theatrical feature under its new hybrid model of releasing films both to home streaming and movie theaters simultaneously. Debuting on Christmas Day, "Wonder Woman 1984" was unleashed on both HBO Max and theaters, setting a pandemic box office record of $16.7 million in sales in the U.S. and Canada.
While WarnerMedia has not released the number of streamers during the weekend of the movie's release, the company stated that half of its HBO Max subscribers watched "Wonder Woman 1984" on Christmas; HBO Max had a total of 12.6 million subscribers as of early December, according to CNBC.
Due to the surging coronavirus outbreak in the United States that is trended to continue, the film industry--including producers and theaters--is continuing to suffer from local stay-at-home orders and changes in consumer habits. Yet, the emergency use approval of two effective coronavirus vaccines--developed by Pfizer (NYSE: PFE)-BioNTech (NASDAQ: BNTX) and Moderna (NASDAQ: MRNA)--may give movie theatres and the film industry as a whole a better outlook moving into 2021.
The record-setting box office numbers for the pandemic era also point to pent-up theater demand amongst consumers, meaning as more people are comfortable in public settings, the more theaters will benefit. Major theater chain stocks are still deeply in the red for this year: AMC Entertainment (NYSE: AMC) down 70%, Cineworld Group (OTC: CNNWF) down 69% and Cinemark Holdings (NYSE: CNK) down 48%.
Despite this potential for positive change in 2021, the film industry nevertheless faces many future challenges.
The National Association of Theatre Owners has predicted that around 70% of all theatres will likely face bankruptcy by the beginning of next year. But if the vaccine is successfully implemented by April, such as is expected, then the movie industry could very well be back on track and in business again.
"Wonder Woman 1984" is a movie that has attracted many viewers, but despite this attraction, many complications lie ahead for the film industry.